Capital markets perform two distinct functions: provision of capital and facilitation of good governance through information production and monitoring. I argue that the governance function has more impact on the efficiency with which resources are utilized within the firm. Based on industry level data across thirty-eight countries, I present evidence suggesting a positive relation between marke...

This paper explores the role of imports as a mechanism of transmission of international technological spillovers and the significance of these for the growth and economic convergence of the OECD countries. For this purpose a growth model is estimated that includes amongst its determinants a measure of the stock of technological knowledge. The results reveal first that international technologica...

The role that investment-specific technological change played in generating postwar U.S. growth is investigated here. The premise is that the introduction of new, more efficient capital goods is an important source of productivity change, and an attempt is made to disentangle its effects from the more traditional Hicksneutral form of technological progress. The balanced growth path for the mode...

Capital goods are embodied knowledge of how to produce. Therefore, capital development is a learning process, through which knowledge gets embodied in new capital goods. Because the necessary knowledge is dispersed among many people who must interact to communicate their particular, often tacit knowledge, capital development is a social process. Because this interaction takes time and continual...